(Filed Under wholesale Lingerie News). La Perla lost 23.60 million euros (about $27.4 million at current exchange rates) on sales of 34.241 million euros (about $39.7 million) in the first half of 2021, compared to a loss of 41.30 million euros (about $47.9 million) on sales of 27.531 million euros (about $31.9 million) in the same period last year.
Retail sales through its own stores, outlets and online website rose to 29.618 million euros (about $34.3 million) from 22.690 million euros (about $26.3 million) in the first half of 2020, while net wholesale sales dropped to 3.695 million euros (about $4.3 million) from 3.864 million euros (about $4.5 million).
La Perla noted that “although management was encouraged by a continuation of the second half of 2020’s positive trends, the Covid-19 crisis continued to significantly affect results during the first half of 2021. The pandemic brought disruption across the business from the closure of physical stores for extended periods to significant supply chain interruptions.”
On a positive note, the company reported “gross margin increased from 50% to 59%, driven by a greater proportion of full-price sales and benefiting a reversal of inventory provisions.”
Arguing that despite recent reversals, the company has the resources needed to continue operating indefinitely, the financial release at the end of October stated, “La Perla has concluded that it is appropriate to adopt the going concern basis of accounting in preparing the interim results for the six months ended 30 June 2021. Among others, La Perla’s financing arrangements include a loan by Tennor Holding B.V. and La Perla Fashion Finance B.V. in the aggregate principal amount of up to €340 million, which does not mature over the next 12 months. The total amount outstanding under this loan stands at €237.0 million as of 30 June 2021, inclusive of accrued interest and fees.”
The company concluded, “although the restructuring is still ongoing and therefore includes uncertainties surrounding its implementation, the directors are confident that the continuing reorganization process will provide positive results in a short period of time allowing the Group to operate in the foreseeable future.” — NM
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